15th June 2022
The Insurance Development Forum(IDF) has announced a trio of key efforts launched during the IDF Summit 2022, which was convened at the Swiss Re Centre for Global Dialogue in Rüschlikon, Zurich, Switzerland on 13th and 14th June.
The IDF is a public-private partnership led by the insurance industry and co-chaired with the United Nations Development Programme and the World Bank, and supported by international organisations.
Focused on the theme “Purpose, Protection and Perspectives”, the high-level IDF Summit brought together leading independent voices to share their views on the critical role the insurance industry in collaboration with the public sector and other stakeholders play in responding to the increasing risks we all face.
The IDF Summit highlighted the urgent need to build better risk management and protection systems for all. The objective was to inspire, foster new ideas and catalyse positive action.
Three key announcements were made during the event:
-Tripartite Project for Ghana Launched: The Ghana Ministry of Finance, the United Nations Development Programme(UNDP), the German Government, and the Insurance Development Forum (IDF), announced the launch of a Tripartite project to develop a sovereign risk transfer scheme for urban floods in Ghana, alongside long-term investments in the country’s capacity to leverage and integrate insurance and risk financing into their development strategies. This is the fourth country project to be launched under the Tripartite Agreement following the launch of a 2022 programme in Mexico to develop insurance to protect vulnerable farmers from climate impacts, a 2021 programme to develop a parametric flood and earthquake product, as well as an indemnity landslide protection Medellín in Colombia as part of its Disaster Risk Management Plans; and the inaugural Tripartite country project launched for Peru in 2020 to design an insurance programme for the country’s public schools.
-The launch of the white paper: "Insurance Development in Emerging Markets: The role of policy and regulation". This joint IDF and Geneva Association report offers a comprehensive look at how local legal, policy and regulatory frameworks can create the right environment for a thriving insurance market, which can ultimately help to close protection gaps in the most vulnerable countries. The report identifies how public-private partnerships can often achieve high impact results that cannot be achieved by one sector alone. It finds that key factors that drive insurance market development and close protection gaps are: sufficient political prioritisation of insurance, higher levels of financial and insurance literacy and risk awareness among all stakeholders, effective and efficient insurance regulation and supervision, increasing trust in insurance solutions.
-Formal Launch of the IDF & V20 Global Risk Modelling Alliance(GRMA), co-funded by the German Federal Ministry for Economic Cooperation and Development and the IDF insurance industry members. An agreement to form the GRMA was a key announcement from COP26; furthering its operational delivery is part of the IDF’s commitment to V20 countries, and is a key action as we move towards the G7 and COP27 in Egypt, where adaptation and resilience are a key area of focus. The GRMA is founded on the principle that equal and widespread access to risk understanding in climate-vulnerable economies will lead to more autonomous, locally trusted risk management strategies and therefore increase the flow of climate and disaster risk finance. Announced conceptually in 2021 and now with initial funding provided by the German government,, the IDF Summit 2022 marked the operational availability of the GRMA and encouraged further international partners to commit their support to the programme.
Michel M. Liès, chairman of Zurich Insurance Group and chair of the IDF Steering Committee, said “The IDF Summit 2022 gathered together members from industry, Government representatives, representatives from different United Nations agencies, the World Bank, international institutions and civil society. The actions highlighted at this event are testament to the power that collective action can have in the effort to build resilience to the impacts of climate change and other systemic shocks. We have heard inspirational speakers from governments, the humanitarian and the private sectors; we are listening and we are taking action.”
Ekhosuehi Iyahen, secretary General of the Insurance Development Forum, said “I am proud of what we have collectively achieved so far as highlighted at the IDF Summit 2022. I am also encouraged by the drive to continue to address the urgent need to build better climate and disaster risk management and protection systems for those who need it most, reflecting the intrinsic connection of this aim to the purpose of the insurance industry. The continuing objective will be to inspire, foster new ideas and catalyse positive action as we move towards COP27.”
IDF Trends(17 articles)